Groundwork for e-mobility investments in Lao PDR

Document cover for Groundwork for e-mobility investments in Lao PDR
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Groundwork for e-mobility investments in Lao PDR

Lao PDR has no domestic petroleum resources, the country fully relies on imports, and more than 80% of imported fuel is used in the transport sector. In contrast, Lao PDR has large untapped domestic renewable energy sources. The Government has set the objective of transitioning to e-mobility in the transport sector as a priority in the National Green Growth Strategy, the 9th National Social Economic Development Plan (2021-2025) as well as in 2020 NDC update. E-mobility transition will generate green business opportunities, private sector investments, reduce GHG emissions and pollution, while contributing to improve the trade deficit. Preparatory work is needed in order to stimulate interest from users and de-risk private sector participation. Considering existing initiatives and following extensive consultation with public and private stakeholders, namely the Department of Transport under Ministry of Public Works and Transport, Ministry of Energy and Mines, users, banks, as well as suppliers of electric vehicles and charging stations, this Readiness program will produce the below deliverables:

  • Updated transport-related regulations to incorporate EVs, namely the “Regulation on Ground Vehicles Registration and Management”, and “Regulation on Vehicles and Spare Parts Standards for Importation, Registration and Assembly to use in Lao PDR
  • New policy incentive mechanism to accelerate e-mobility transition and contribute to NDC target;
  • EV training plan and curriculum targeting selected government agencies and at least 5 associated training sessions;
  • National scale EV Communication Strategy;
  • An online platform to disseminate EV training materials among government agencies as well as EV regulations to the general public;
  • Pre-feasibility study for an EV financing facility;
  • Development of one high quality GCF Concept Note to mobilize financing towards e-mobility transition in Lao PDR (by GGGI through co-funding).

The beneficiaries of this Readiness will be the Government of Lao PDR including Department of Transport, and National Vehicles Inspection and Registration Center. The project will be also beneficial to private sector companies active in supplying electric vehicles and infrastructure such as charging stations. In addition, the beneficiaries also include financial institutions, EV users, and people who could access green jobs through e-mobility transition.

Cover date 23 September 2022
Document type Approved readiness proposal
Global Green Growth Institute
Lao People's Democratic Republic (the)